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With the use of one or more of the following formulas: ((ft-e0)/e0) = rh-rf ((et-e0)/e0) = ih-if rh-rf = ih-if The spot rate on the

With the use of one or more of the following formulas: ((ft-e0)/e0) = rh-rf ((et-e0)/e0) = ih-if rh-rf = ih-if The spot rate on the Swiss franc are Sfr2.56/$ and the 180 day forward rate is Sfr2.50/$.Which of the following is correct? The difference between the spot and forward rates suggested that.... a. interest rates were higher in the US than in Switzerland b. interest rates were higher in Switzerland than in the US c. the inflation rate in Switzerland is greater than the inflation rate in the US d. the Swiss Franc is expected to fall in value relative to the dollar

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